CONCOR tumbles after weak Q1 show

Container Corporation of India (CONCOR) slumped 13.5% to Rs 394 after the company's consolidated net profit dropped 78% to Rs 49.29 crore in Q1 June 2020 over Q1 June 2019.

Net sales for Q1 June 2020 stood at Rs 1194.20 crore, fall 28% compared with Rs 1654.76 crore in Q1 June 2019. The result was announced after market hours on Friday, 7 August 2020.

The company registered a 78% fall in profit before tax to Rs 71.79 crore in Q1 June 2020 as against Rs 325.34 crore in Q1 June 2019. Total tax expenses declined 77% year on year to Rs 22.5 crore in Q1 June 2020.

The company's business is to provide logistics services, which is categorised as "essential services". The revenue of the company and other consequential expenses during the quarter decreased due to nationwide lockdown for COVID-19. The company is positive on the long-term business outlook as well as its financial position. However, the company is closely monitoring any material changes to future economic conditions.

CONCOR is engaged in transportation of containers (rail and road), and handling of containers. The firm is also engaged in the operation of logistics facilities, including dry ports, container freight stations and private freight terminals.

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